Government pushes PSUs for cash and growth

A cash-strapped government has turned to its cash-rich enterprises to tap investible funds to the tune of Rs2,50,000 crore. Top 25 central public sector units in the country are reported to be sitting on a cash pile totaling Rs2,50,000 crore.
 
Prime Minister Manmohan Singh today met CMDs of 25 major `Maharatna' and `Navaratna' CPSEs, which also account for a large proportion of the country's market capitalisation and organised sector employment and asked them to invest their surplus fund of Rs2,50,000 crore to reignite economic growth.

At the meeting, which was also attended by finance minister P Chidambaram and deputy chairman of the Planning Commission Montek Singh Ahluwalia, the prime minister spoke about the importance of the central public sector enterprises to the processes of nation building.

The prime minister noted that the public sector enterprises were instruments for bringing India back into reckoning as one of the great economies of the world.

"We cannot be satisfied with the status quo. Our growth should be maintained at the level of 8 to 8.5 per cent regardless of what happens in the world economy. We must learn to swim and swim fast enough whatever be the circumstances," he said.

"Even if the international demand is not there, domestic demand should drive the investment and our endeavours," he said.

He said the CPSEs contribute over 6 per cent of the country's GDP and their profits are at a record levels of almost Rs1,00,000 crore. They have helped in transforming hitherto backward regions into modern hubs of industry and prosperity.